Company which pulled out of Edinburgh Christmas festival collapses owing £800,000 for 'breach of contract'

Angels Event Experience set up a joint enterprise with Visionar Ltd to run the 2022 Christmas market.

The company which pulled out of running Edinburgh’s Christmas festival at the last minute last year has collapsed into liquidation, citing a breach of contract relating to the event as the main factor.

Angels Event Experience Ltd, which won the £5.5 million contract to run the festival over three years in early 2022, pulled out of the contract in late September. The decision came after offering the council an event with significantly less income to the council – understood to be around £180,000 – and fewer attractions, throwing the entire event into disarray.

In July it was revealed the company faced a court battle worth £800,000 with its former business partner connected to the decision to withdraw from the festival contract.

Edinburgh's Christmas festival.

However, liquidation papers seen by The Scotsman show Angels Event Experience collapsed into liquidation after it was advised it was "not anticipated to win” the case and would be unable to pay the £800,000 in damages.

Accounts filed by Angels in late June were bullish about the prospects for success in the court action, stating that the “likelihood of the legal action being successful is unlikely”.

Following independent financial advice, director of the company David Kohlert, began liquidation proceedings in late July.

The papers state: “In the absence of their main client, the Company made efforts to attract a new client. These efforts subsequently led to the Company applying for the Edinburgh Christmas Markets (Visionar Limited) for 2022. Such efforts proved successfull and Angels Event Experience Limited were awarded this contract.

“Unfortunately, however, the Company faced challenges in successfully completing the projects to the specification that was required, by the client. Consequently, on 01 February 2023, this situation escalated to a lawsuit by Visionar Limited for the breach of contract.

"As the claim against the Company escalated, it was soon evident that Angels Event Experience Limited did it have the means to pay the damages which are expected to arise from the lawsuit.”

Mr Kohlert has been contacted for comment.

The legal dispute centres around the corporate arrangements to deliver the Edinburgh Christmas Festival.

Angels, which ran the German Christmas market huts, entered into a joint arrangement with fairground ride operators Taylor’s of Edinburgh to deliver the 2022 Christmas festival following the successful tender for the festival contract.

A company was set up, Visionar Limited, with the owner of AEE, David Kohlert, and of Taylor’s, Mitchell Taylor, listed as equal shareholders of the new company when it was incorporated last year.

Mr Kohlert resigned his directorship of Visionar three days after his company decided to cancel the Edinburgh Christmas contract with Edinburgh Council.

Council papers state Angels “notified the council that it was not able to deliver the contract as awarded in June 2022 and had been asked to be released from the contract” before an emergency contract was granted to Unique Assembly Limited, a similar joint enterprise to Visionar, in mid-October.

However it appears that councillors were not told that this was a breach of contract by Mr Kohlert, nor is it known if council officials were aware of this.

Councillors were told the company had ceased trading in January 2023, but liquidation papers state this did not happen until February 28, 2023.

Edinburgh Council leader, Cammy Day, said: “Council Leader Cammy Day said: “Our contract was with Angel Events Experience (AEE), not Visionar. This contract was terminated by the Council because AEE could not deliver. While we were aware that Visionar had been created as a vehicle for delivering some of the Christmas contract services, we were not party to the arrangements between AEE and Visionar, and are not aware of the details of any claim Visionar may have against AEE.

“Councillors were aware that Visionar had been formed and had contracted suppliers to deliver Edinburgh’s Christmas but were not aware of any contractual arrangements between AEE and Visionar.

“Again, the Council’s contract was with AEE not Visionar. While we sympathise with businesses and creditors of Visionar the Council is not liable for any losses. As far as possible, Unique Assembly engaged as many suppliers as they could to deliver similar services for Edinburgh’s Christmas and to honour the agreements that Visionar had in place.”